By Amelia Isaacs on Wednesday 13 April 2022
Bolstering its aim to promote financial inclusion across Latin America, Nubank has scored a $650m credit line.
One of the largest digital financial service platforms in Latin America, Nubank, has just secured a $650m credit line.
The funds come from a three-year local currency line of credit financed by Morgan Stanley, Citi, Goldman Sachs and HSBC, who underwrote Nubank’s IPO in December last year, where the fintech raised around $2.8bn.
With a focus on technology development and product innovation, growing its customer base and attracting “the best talent in the region”, the company will use the money to accelerate growth in both Mexico and Colombia.
“We are redoubling our commitment in Mexico and Colombia to continue growing and generating a positive local impact through the financial inclusion of millions of Latin Americans,” Nubank founder and CEO David Vélez said.
Founded in Brazil in 2013, Nubank started to expand internationally with its launch in Mexico in 2019 before branching out to Colombia in 2020.
It says it now has around 54 million customers at a regional level and is the largest credit card issuer in Mexico with 1.4 million customers.
Colombia also saw its customer base increase almost threefold in the final quarter of the year to 114,000.
“We have grown at an intense pace and this regional credit facility allows us to continue advancing more quickly in our objective of fighting bureaucracy to empower our customers,” general manager of Nu Colombia Catalina Bretón said.
Warren Buffet’s Berkshire Hathaway, invested $500m in the fintech last June, just months before the company went public.
He doubled down on this investment just a few months ago, increasing his stake in the business to $1bn.
The company started out issuing credit cards with no annual fees and has since expanded to offer debit cards, bank accounts, loans and life insurance.
“Nu arrived in Mexico with the mission of fighting complexity and bureaucracy to empower people so that they can regain control of their finances, promoting financial inclusion and the development of human capital in the country,” Nu Mexico general manager Emilio González said.
“This funding confirms our long-term commitment to Mexico and will allow us to offer our products to many millions more people.”